California and the U.S. Department of Transportation have formed a partnership to help facilitate projects and financing opportunities for multibillion-dollar freight infrastructure improvements in the state that enable goods movement nationwide. American Shipper reported that the goal of this partnership is to address the long-term structural issues that have had a part in the supply chain issues this year amid the record import demand and operational breakdowns at every stage within the logistics system.
Last week, Governor Gavin Newsom issued an executive order to activate state resources to help assist in immediate relief for the port congestion and shortfalls in truck capacity, reported by American Shipper. “California’s ports and infrastructure system is key to the country’s supply chain. This innovative federal-state partnership will help us fast-track those projects that will make our ports and infrastructure even more efficient,” Newsom explained.
Some of the public and public-private projects that are scheduled to receive support through the agreement include:
- Port upgrades
- Expanding capacity for freight rail
- Developing inland port facilities for increased warehouse storage
- Rail yard and truck electrification
- Highway upgrades to improve truck travel times
- Grade-separated crossings to reduce the number of rail-street intersections and improve safety and efficiency
- Land ports of entry to expand trade capacity and cross-border commerce with Mexico and Canada
With the collaboration of the DOT, California is able to expedite work on these projects to upgrade trade corridors, including around the gateway ports of Los Angeles and Long Beach and the giant warehousing district known as the Inland Empire, said officials on Thursday and reported by Freightwaves.
The Build America Bureau at the U.S. DOT will help support the California State Transportation Agency in producing infrastructure projects created to strengthen and improve the capacity of the freight system. Some of California’s efforts include making state-owned properties available to store excess shipping containers that are clogged at the ports. Hopefully with these efforts cargo delays, improved safety for workers, reduced emissions, and refined efficiency, will all help improve the supply chain issues that have been occurring in the industry. Contact a team member if you would like to learn more today!
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